Advertisement

Wing Lung shares gain on bidding news

Reading Time:1 minute
Why you can trust SCMP

Shares of Wing Lung Bank rose as much as 3.48 per cent yesterday, bucking the decline in the broad market on news that China Merchants Bank was the preferred bidder for its controlling stake.

Advertisement

Wing Lung reached an intraday high of HK$154.50 before closing at HK$152.30, up 2 per cent from the previous close of HK$149.30.

In contrast, shares of China Merchants fell 1.52 per cent to HK$29.10.

'No doubt shares of Wing Lung benefited from the news about the bid, but China Merchants' share performance was in line with the market,' said Ivan Li, an analyst at Kim Eng Securities.

The Hang Seng Index fell 1.31 per cent, to 24,714.07 yesterday.

Advertisement

Mr Li said China Merchants could benefit from the acquisition more than other bidders, which included Industrial and Commercial Bank of China and Australia and New Zealand Banking Group.

Advertisement